Ripple calls for more crypto regulation in the UK

Ripple, the company that owns the world's third-largest cryptocurrency by market cap, XRP, has urged British regulators to develop more crypto regulation in the country, according to the Telegraph.

It says there is a need for more regulation to enable innovation in the field, while also minimizing the risk for investors, and that the main focuses for regulators should be consumer protection, anti-money laundering (AML), and financial stability. Ripple also cited Japan evolving its crypto regulations last year to ensure customer protection by forcing crypto exchanges to comply with AML regulations. It argued that the UK should do something similar in order to give more clarity in the field, and help these companies thrive.

The UK has been at the forefront of other fintech segments, but it's lagging behind on crypto. The UK is one of the biggest fintech players in the world, and has driven innovation in the country with regulations and initiatives.

However, when it comes to crypto, it has largely taken a wait-and-see approach, according to Ryan Zagone, director of regulatory relations at Ripple. And, although the government launched a task force earlier this year, it will likely still take time before it sees any results. All the while, banks in the country have made confusing moves, with Barclays comparing Bitcoin to an "infectious disease," while also partnering with cryptocurrency exchange Coinbase to give it access to Faster Payments. This likely leaves many crypto players confused, and regulators need to step in to ensure there is more certainty in the sector.

For now, only a relatively small share of crypto trading occurs in GBP.The UK is not the biggest player when it comes to crypto trading, lagging behind the US, the rest of Europe, and Japan in terms of Bitcoin trading volumes. Hence, without establishing clear rules when it comes to cryptos, it will likely remain a relatively small player in the field.

It would therefore be wise of the country's regulators to look into how they can set up efficient rules for the crypto space to make the UK a more important player in the future, and to allow crypto companies operating in the country to get more clarity.